The future is here: Megatrends shaping the investment landscape

The future is here: Megatrends shaping the investment landscape

At Edison we view companies through the lens of powerful ‘megatrends’ – long-term shifts transforming economies and societies worldwide. Tracking megatrends and identifying innovative firms within each area, we will aim to curate lists of companies that are participating in these powerful forces. The megatrends framework recognises forces that will fundamentally reshape industries over the next decade and beyond. By anticipating these changes, we can identify the game-changing businesses best positioned for strong secular growth.

The key megatrends we will focus on include:

Technological disruption

Accelerating advances in artificial intelligence (AI), digital platforms, crypto, 5G, quantum computing and more are enabling new business models, efficiencies and capabilities. For instance, AI could contribute $15.7tn to the global economy by 2030, according to a PwC report. We will seek to identify the innovators driving rapid disruption.

Climate change solutions

With the urgent priority of global decarbonisation, companies contributing to the clean energy transition will see surging demand. Renewable energy is projected to account for 85% of total global power capacity by 2050 based on analysis from IRENA. Our research will highlight firms in renewable energy, batteries, electric vehicles, carbon removal tech and environmental services and other such areas.

Future mobility

How we move people, products and ideas is primed for a quantum leap, with innovations in autonomous transport, drones, hyperloop systems and space commercialisation. We will identify the creators building the infrastructure for travel’s next era.

Healthcare innovation

Aging populations, chronic illness and sedentary lifestyles drive the need for healthcare innovation. Despite funding pressures in a high inflationary environment, we continue to see sparks of promise within CNS, oncology, niche indications, precision medicine, genomics, med-tech and digital health, with an emphasis on solutions addressing areas with limited treatment options. The complexity of gene and cell therapies is anticipated to yield interesting developments, although over long horizons due to the underlying complexities. Our analysts will spotlight the players in this vital field.

Resource security

With the world’s population expanding, food and other resource systems must overcome massive inefficiencies. Companies enhancing agricultural productivity, alternative proteins and nutrition can help address this mounting concern. In addition, scarcity challenges with water, minerals and other natural resources will drive demand for innovators focused on conservation, sustainability and circular economic solutions.

These powerful megatrends will transform economies in the years ahead. By capturing these long-term shifts in our research efforts, we aim to shine a light on the future industry winners today. The future starts now.

Equity strategy and market outlook – November 2023

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